Urban Outfitters Inc (URBN)

Inventory turnover

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Cost of revenue (ttm)	US$ in thousands	3,425,962	3,391,222	3,383,195	3,375,417	3,361,607	3,319,720	3,243,058	3,156,682	3,054,813	2,888,251	2,794,231	2,636,999	2,572,347	2,595,180	2,614,881	2,696,107	2,729,352	2,661,072	2,630,540	2,620,696
Inventory	US$ in thousands	550,242	721,011	586,514	590,326	587,510	743,579	697,474	629,953	569,699	627,103	483,148	477,777	389,618	489,234	351,771	335,640	409,534	531,565	440,087	408,362
Inventory turnover		6.23	4.70	5.77	5.72	5.72	4.46	4.65	5.01	5.36	4.61	5.78	5.52	6.60	5.30	7.43	8.03	6.66	5.01	5.98	6.42

January 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $3,425,962K ÷ $550,242K
= 6.23

The inventory turnover for Urban Outfitters Inc has fluctuated over the past few years. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the company has sold and replaced its inventory during a specific period.

From the data provided, we can see that the inventory turnover ratio has varied between 4.46 to 8.03 over the past two years. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly, which can be beneficial as it reduces the risk of holding obsolete or unsold inventory.

Urban Outfitters Inc experienced a peak in inventory turnover in April 2020, with a ratio of 8.03, suggesting efficient inventory management during that period. However, the ratio has since fluctuated, with the latest data showing an inventory turnover of 6.23 as of January 31, 2024.

It is important for the company to consistently monitor and analyze its inventory turnover ratio to ensure optimal inventory management practices. Further investigation into the factors influencing these fluctuations in inventory turnover would be necessary to determine the underlying reasons and potential areas for improvement.